Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 81157 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 93803 

(December 16, 2021), 86 FR 72647 (December 22, 

2021) (SR–NYSEAMER–2021–46) (Notice of Filing 

and Immediate Effectiveness of Proposed Rule 

Change to Adopt a New Historical Market Data 

Product to Be Known as the NYSE Options OpenClose Volume Summary) (‘‘Product Filing’’). 

5References to ‘‘member organization’’ as used in 

Exchange rules include American Trading Permit 

(‘‘ATP’’) Holders, which are registered brokers or 

dealers approved to effect transactions on the 

Exchange’s options marketplace. Under the 

Exchange’s rules, an ATP Holder has the status as 

a ‘‘member’’ of the Exchange as that term is defined 

in Section 3 of the Act. See Rule 900.2NY. 

6The Exchange has announced that it will begin 

[sic] migrating Exchange-listed options to the Pillar 

technology platform on October 23, 2023, available 

here: https://www.nyse.com/trader-update/history?

page=5#110000635130. 

7See Securities Exchange Act Release No. 94334 

(March 1, 2022), 87 FR 12748 (March 7, 2022) (SR– 

NYSEAMER–2022–11) (Notice of Filing and 

Immediate Effectiveness of Proposed Change To 

Amend the NYSE American Options Proprietary 

Market Data Fee Schedule). 

8The terms Customer, Professional Customer, 

Firm and Market Maker are defined in Rule 

900.2NY. 

to Section 19(b)(2) of the Act,5

designates January 1, 2024, as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–NASDAQ–2023–035). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25662 Filed 11–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98951; File No. SR– 

NYSEAMER–2023–58] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Amend the NYSE American 

Options Proprietary Market Data Fee 

Schedule 

November 15, 2023. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

November 1, 2023, NYSE American LLC 

(‘‘NYSE American’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE American Options Proprietary 

Market Data Fee Schedule (‘‘Fee 

Schedule’’) to adopt fees for the NYSE 

Options Open-Close Volume Summary 

market data product, effective 

November 1, 2023. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to adopt fees for the NYSE 

Options Open-Close Volume Summary,4

which will be available for purchase by 

any market participant, i.e., members 5

and non-members. The Exchange 

proposes to implement fees for the 

NYSE Options Open-Close Volume 

Summary market data product on 

November 1, 2023.6 The proposed fees 

would be applied equally to all market 

participants and all market participants 

would receive the same information in 

the data feed. 

Background 

By way of background, pursuant to 

the Product Filing, the Exchange 

adopted two versions of the NYSE 

Options Open-Close Volume Summary: 

an End of Day Volume Summary market 

data product and an Intra-Day Volume 

Summary market data product. The 

Exchange initially introduced the End of 

Day Volume Summary market data 

product on March 1, 2022 and adopted 

fees for the End of Day Volume 

Summary market data product.7 The 

purpose of this filing is to adopt fees for 

the Intra-Day Volume Summary market 

data product. 

The Intra-Day Volume Summary 

provides a volume summary of trading 

activity on the Exchange at the option 

level by origin (Customer, Professional 

Customer, Firm, Broker-Dealer, and 

Market Maker 8), side of the market (buy 

or sell), contract volume, and 

transaction type (opening or closing). 

The Customer, Professional Customer, 

Firm, Broker-Dealer, and Market Maker 

volume is further broken down into 

trade size buckets (less than 100 

contracts, 100–199 contracts, greater 

than 199 contracts). The Intra-Day 

Volume Summary provides similar 

information to that of the End of Day 

Volume Summary but is produced and 

updated every 10 minutes during the 

trading day. The data is captured in 

‘‘snapshots’’ taken every 10 minutes 

throughout the trading day and will be 

available to subscribers within five 

minutes of the conclusion of each 10- 

minute period. Each update would 

represent combined data captured from 

the current ‘‘snapshot’’ and all previous 

‘‘snapshots’’ and thus would provide 

open-close data on an aggregate basis. 

The NYSE Options Open-Close 

Volume Summary is proprietary 

Exchange trade data and does not 

include trade data from any other 

exchange. It is also a historical data 

product and not a real-time data feed. 

The Exchange anticipates a wide 

variety of market participants to 

purchase the Intra-Day Volume 

Summary data product, including, but 

not limited to, individual customers, 

buy-side investors, and investment 

banks. The Exchange believes the IntraDay Volume Summary would provide 

subscribers data that should enhance 

their ability to analyze options trade and 

volume data, and to create and test 

trading models and analytical strategies. 

The Exchange believes the Intra-Day 

Volume Summary will be a valuable 

tool that subscribers can use to gain 

comprehensive insight into the trading 

activity in a particular options series. 

The Intra-Day Volume Summary is a 

completely voluntary product, in that 

the Exchange is not required by any rule 

or regulation to make this data available 

and that potential subscribers may 


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81158 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 

9See Securities Exchange Act Release Nos. 89497 

(August 6, 2020), 85 FR 48747 (August 12, 2020) 

(SR–CboeBZX–2020–059); 89498 (August 6, 2020), 

85 FR 48735 (August 12, 2020) (SR–Cboe-EDGX– 

2020–36); 89496 (August 6, 2020), 85 FR 48743 

(August 12, 2020) (SR–C2–2020–010); 89586 

(August 17, 2020), 85 FR 51833 (August 21, 2020) 

(SR–C2–2020- 012); 62887 (September 10, 2010), 75 

FR 57092 (September 17, 2010) (SR–Phlx–2010– 

121); 65587 (October 18, 2011), 76 FR 65765 

(October 24, 2011) (SR–NASDAQ–2011–144); 61317 

(January 8, 2010), 75 FR 2915 (January 19, 2010) 

(SR–ISE–2009–103); 81632 (September 15, 2017), 

82 FR 44235 (September 21, 2017) (SR–GEMX– 

2017–42); 91963 (May 21, 2021), 86 FR 28662 (May 

27, 2021) (SR–EMERALD–2021–18); 91964 (May 21, 

2012), 86 FR 28667 (May 27, 2021) (SR–PEARL– 

2021–24); and 91965 (May 21, 2021), 86 FR 28665 

(May 27, 2021) (SR–MIAX–2021–18). 

10See Securities Exchange Act Release No. 95201 

(July 6, 2022), 87 FR 41366 (July 12, 2022) (SR– 

NYSEArca–2022–37) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

to Amend the NYSE Arca Options Proprietary 

Market Data Fee Schedule). 

11See supra note 9 [sic]. 

12See Price List—U.S. Derivatives Data for 

Nasdaq PHLX, LLC (‘‘PHLX’’), The Nasdaq Stock 

Market, LLC (‘‘Nasdaq’’), Nasdaq ISE, LLC (‘‘ISE’’), 

and Nasdaq GEMX, LLC (‘‘GEMX’’), available at 

http://www.nasdaqtrader.com/Trader.aspx?id=

DPPriceListOptions#web. Particularly, PHLX offers 

‘‘Nasdaq PHLX Options Trade Outline (PHOTO)’’ 

and assesses $2,500 per month for an intra-day 

subscription; Nasdaq offers the ‘‘Nasdaq Options 

Trade Outline (NOTO)’’ and assesses $750 per 

month for an intra-day subscription; ISE offers the 

‘‘Nasdaq ISE Open/Close Trade Profile’’ and 

assesses $2,000 per month for an intra-day 

subscription; and GEMX offers the ‘‘Nasdaq GEMX 

Open/Close Trade Profile’’ and assesses $1,000 per 

month for an intra-day subscription. Cboe EDGX 

Exchange, Inc. (‘‘EDGX’’) assesses $1,000 per month 

for an intraday subscription and Cboe BZX 

Exchange, Inc. (‘‘BZX’’) assesses $1,500 per month 

for an intraday subscription. See EDGX fee schedule 

available at http://markets.cboe.com/us/options/ 

membership/fee_schedule/edgx/; and BZX fee 

schedule available at http://markets.cboe.com/us/ 

options/membership/fee_schedule/bzx/. Miami 

International Securities Exchange, LLC (‘‘MIAX’’), 

MIAX Emerald, LLC (‘‘Emerald’’) and MIAX 

PEARL, LLC (‘‘PEARL’’) each assesses $2,000 per 

month for an intra-day subscription. See MIAX Fee 

Schedule, available at https://

www.miaxoptions.com/sites/default/files/fee_

schedule-files/MIAX_Options_Fee_Schedule_

09282021.pdf; Emerald Fee Schedule, available at 

https://www.miaxoptions.com/sites/default/files/ 

fee_schedule-files/MIAX_Emerald_Fee_Schedule_

09282021.pdf; and PEARL Fee Schedule, available 

at https://www.miaxoptions.com/sites/default/files/ 

fee_schedule-files/MIAX_Pearl_Options_Fee_

Schedule_092821.pdf. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15 15 U.S.C. 78f(b). 

16 15 U.S.C. 78f(b)(4). 

17See supra notes 9 and 10. 

18The Options Clearing Corporation (‘‘OCC’’) 

publishes options and futures volume in a variety 

of formats, including daily and monthly volume by 

exchange, available here: https://www.theocc.com/ 

Market-Data/Market-Data-Reports/Volume-andOpen-Interest/Monthly-Weekly-Volume-Statistics. 

19Based on OCC data for monthly volume of 

equity-based options and monthly volume of ETFbased options, see id., the Exchange’s market share 

in equity-based options decreased from 7.26% for 

the month of July 2022 to 7.09% for the month of 

July 2023. 

purchase it only if they voluntarily 

choose to do so. The Exchange notes 

that other exchanges offer a similar 

product,9 including the Exchange’s 

affiliate, NYSE Arca, Inc. (NYSE 

Arca’’).10

The Intra-Day Volume Summary is 

subject to direct competition from 

similar end of day options trading 

summaries offered by other options 

exchanges.11 All of these exchanges 

offer essentially the same intra day 

options trading summary information. 

The options trading summary files 

offered by the Exchange’s competitors 

are substitutes, not complements. The 

Intra-Day Volume Summary provides 

data on options market activity which 

can be used to infer longer-term trends. 

The information provided by one 

exchange is generally similar to that 

provided by other exchanges because 

order flow can move from one exchange 

to another, and market sentiment trends 

that appear on one exchange are likely 

to be similar to the sentiment trends on 

other exchanges. The key differentiator 

in the quality of the data depends on the 

volume of transactions on a given 

exchange. The greater the volume of 

transactions, the greater the value of the 

data. 

Proposed Rule Change 

The Exchange proposes to adopt 

subscription fees for the purchase of the 

Intra-Day Volume Summary on a 

monthly basis. The Exchange proposes 

to assess a fee of $2,000 per month for 

subscribing to the Intra-Day Volume 

Summary. As noted on the Fee 

Schedule, for mid-month subscriptions, 

new subscribers will be charged for the 

full calendar month for which they 

subscribe and will be provided NYSE 

Options Open-Close Volume Summary 

data for each trading day of the calendar 

month in which they subscribed. The 

proposed monthly fees will apply to all 

market participants. The Exchange notes 

that other exchanges provide similar 

data products that may be purchased on 

a monthly basis and are comparably 

priced.12

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,13 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,14 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and to protect investors and the 

public interest, and that it is not 

designed to permit unfair 

discrimination among customers, 

brokers, or dealers. The Exchange also 

believes that its proposal to adopt fees 

for the Intra-Day Volume Summary 

market data product is consistent with 

Section 6(b) of the Act 15 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 16 in particular, in that it is 

an equitable allocation of dues, fees and 

other charges among its members and 

other recipients of Exchange data. 

In adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations (‘‘SROs’’) and brokerdealers increased authority and 

flexibility to offer new and unique 

market data to the public. It was 

believed that this authority would 

expand the amount of data available to 

users and consumers of such data and 

also spur innovation and competition 

for the provision of market data. 

Particularly, the Intra-Day Volume 

Summary further broadens the 

availability of U.S. options market data 

to investors consistent with the 

principles of Regulation NMS. 

Subscribers to the data may also be able 

to enhance their ability to analyze 

options trade and volume data and 

create and test trading models and 

analytical strategies. The Exchange 

believes the Intra-Day Volume Summary 

would provide a valuable tool that 

subscribers can use to gain 

comprehensive insight into the trading 

activity in a particular series, but also 

emphasizes such data is not necessary 

for trading. Moreover, other exchanges 

offer a similar data product.17

The Exchange operates in a highly 

competitive market. Indeed, there are 

currently 17 registered options 

exchanges competing for order flow. 

Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.18

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity 

and ETF options order flow. More 

specifically, in July 2023, the Exchange 

had less than 8% market share of 

executed volume of multiply-listed 

equity and ETF options trades.19

The Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Specifically, in Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 


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20See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

21NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. 

Cir. 2010) (quoting H.R. Rep. No. 94–229 at 92 

(1975), as reprinted in 1975 U.S.C.C.A.N. 323). 

22 Id. at 535. 

23See Securities Exchange Act Release No. 34– 

90217 (October 16, 2020), 85 FR 67392 (October 22, 

2020) (SR–NYSENAT–2020–05) (internal quotation 

marks omitted), quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74781 (December 9, 2008) (ArcaBook 

Approval Order). 24See supra note 12. 25See supra notes 9 and 10. 

and SRO revenues, and also recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 20

With respect to market data, the 

decision of the United States Court of 

Appeals for the District of Columbia 

Circuit in NetCoalition v. SEC upheld 

the Commission’s reliance on the 

existence of competitive market 

mechanisms to evaluate the 

reasonableness and fairness of fees for 

proprietary market data: 

In fact, the legislative history indicates that 

the Congress intended that the market system 

‘‘evolve through the interplay of competitive 

forces as unnecessary regulatory restrictions 

are removed’’ and that the SEC wield its 

regulatory power ‘‘in those situations where 

competition may not be sufficient,’’ such as 

in the creation of a ‘‘consolidated 

transactional reporting system.’’ 21

The court agreed with the 

Commission’s conclusion that 

‘‘Congress intended that ‘competitive 

forces should dictate the services and 

practices that constitute the U.S. 

national market system for trading 

equity securities.’ ’’ 22

More recently, the Commission 

confirmed that it applies a ‘‘marketbased’’ test in its assessment of market 

data fees, and that under that test: 

the Commission considers whether the 

exchange was subject to significant 

competitive forces in setting the terms of its 

proposal for [market data], including the 

level of any fees. If an exchange meets this 

burden, the Commission will find that its fee 

rule is consistent with the Act unless there 

is a substantial countervailing basis to find 

that the terms of the rule violate the Act or 

the rules thereunder.23

Making similar historic data products 

available to market participants fosters 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supra-competitive fees. In the 

event that a market participant views 

one exchange’s data product as more or 

less attractive than the competition they 

can and do switch between similar 

products. The proposed fees are a result 

of the competitive environment, as the 

Exchange seeks to adopt fees to attract 

purchasers of the Intra-Day Volume 

Summary data product. 

The Exchange believes the proposed 

fees are reasonable as they are 

comparable to the fees assessed by other 

exchanges that provide similar data 

products.24 Indeed, proposing fees that 

are excessively higher than established 

fees for similar data products would 

simply serve to reduce demand for the 

Exchange’s data product, which as 

noted, is entirely optional. Like the 

Intra-Day Volume Summary, other 

exchanges offer similar data products 

that each provide insight into trading on 

those markets and may likewise aid in 

assessing investor sentiment. Although 

each of these similar data products 

provide only proprietary trade data and 

not trade data from other exchanges, it 

is possible investors are still able to 

gauge overall investor sentiment across 

different option series based on open 

and closing interest on any one 

exchange. Similarly, market participants 

may be able to analyze option trade and 

volume data, and create and test trading 

models and analytical strategies using 

only the Intra-Day Volume Summary 

data relating to trading activity on one 

or more of the other markets that 

provide similar data products. As such, 

if a market participant views another 

exchange’s data as more attractive than 

the Exchange’s data product, then such 

market participant can merely choose 

not to purchase the Exchange’s data 

product and instead purchase another 

exchange’s product, which offer similar 

data points, albeit based on that other 

market’s trading activity. 

The Exchange also believes the 

proposed fees are reasonable as they 

would support the introduction of a 

new historic market data product that is 

designed to aid investors by providing 

insight into trading on the Exchange. 

Once the Intra-Day Volume Summary is 

made available, it would provide 

options market participants with 

valuable information about opening and 

closing transactions executed on the 

Exchange throughout the trading day, 

similar to other trade data products 

offered by competing options 

exchanges. In turn, this data would 

assist market participants in gauging 

investor sentiment and trading activity, 

resulting in potentially better-informed 

trading decisions. As noted above, 

subscribers may also use such data to 

create and test trading models and 

analytical strategies. 

Selling historic market data is also a 

means by which exchanges compete to 

attract business. To the extent that the 

Exchange is successful in attracting 

subscribers to the Exchange’s historic 

data product, it may earn trading 

revenues and further enhance the value 

of its data products. If the market deems 

the proposed fees to be unfair or 

inequitable, subscribers can diminish or 

discontinue their use of the historic data 

and/or avail themselves of similar 

products offered by other exchanges.25

The Exchange therefore believes that the 

proposed fees reflect the competitive 

environment and would be properly and 

equally assessed to all subscribers. The 

Exchange also believes the proposed 

fees are equitable and not unfairly 

discriminatory as the fees would apply 

equally to all subscribers who choose to 

purchase such data. Nothing in this 

proposal treats any category of market 

participant any differently from any 

other category of market participant. 

The Intra-Day Volume Summary is 

available to all market participants, i.e., 

members and non-members, and all 

market participants would receive the 

same information in the data feed. 

As noted above, the Exchange 

anticipates a wide variety of market 

participants to purchase the Exchange’s 

data product, including but not limited 

to individual customers, buy-side 

investors and investment banks. The 

Exchange reiterates that the decision as 

to whether or not to purchase the IntraDay Volume Summary is entirely 

optional for all potential subscribers. 

Indeed, no market participant is 

required to purchase the data product, 

and the Exchange is not required to 

make the data product available to 

market participants. Rather, the 

Exchange is voluntarily making the 

Intra-Day Volume Summary data 

product available, as requested by 

customers, and market participants may 

choose to receive (and pay for) this data 

based on their own business needs. 

Potential subscribers may request the 

data at any time if they believe it to be 

valuable or may decline to purchase 

such data. 

In sum, the fierce competition for 

order flow constrains any exchange 

from pricing its historic market data at 

a supra-competitive price, and 

constrains the Exchange here in setting 

its fees for the Intra-Day Volume 

Summary data product. As described 

above, the Exchange’s data product 

competes head-to-head with numerous 

products currently available in the 

marketplace. These products each serve 

as reasonable substitutes for one another 

as they are each designed to provide 

data on options market activity which 

can be used to infer longer-term trends. 

The information provided by one 


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26 Id. 

27See supra note 12. 

28 15 U.S.C. 78s(b)(3)(A). 

exchange is generally similar to that 

provided by other exchanges because 

order flow can move from one exchange 

to another, and market sentiment trends 

that appear on one exchange are likely 

to be similar to the sentiment trends on 

other exchanges. The key differentiator 

in the quality of the data depends on the 

volume of transactions on a given 

exchange. The greater the volume of 

transactions, the greater the value of the 

historic data. The proposed fees are 

therefore reasonable because in setting 

them, the Exchange is constrained by 

the availability of numerous substitute 

venues offering historic market data 

products and trading. Such substitutes 

need not be identical, but only 

substantially similar to the product at 

hand. 

More specifically, in setting fees for 

the Intra-Day Volume Summary, the 

Exchange is constrained by the fact that, 

if its pricing is unattractive to 

subscribers, subscribers have their pick 

of an increasing number of alternative 

venues to use instead of the Exchange. 

The existence of numerous alternatives 

to the Exchange ensures that the 

Exchange cannot set unreasonable fees 

for historic market data without 

suffering the negative effects of that 

decision in the fiercely competitive 

market in which it operates. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange also does not believe the 

proposed fees would cause any 

unnecessary or inappropriate burden on 

intermarket competition as other 

exchanges are free to introduce their 

own comparable historic data product 

and adopt fees to better compete with 

the Exchange’s offering. Rather, the 

Exchange believes that the proposal will 

promote competition by permitting the 

Exchange to sell a data product similar 

to those offered by other competitor 

options exchanges.26 The Exchange is 

offering the Intra-Day Volume Summary 

in order to keep pace with changes in 

the industry and evolving customer 

needs, and believes the data product 

will contribute to robust competition 

among national securities exchanges. At 

least eight other U.S. options exchanges 

offer a market data product that is 

substantially similar to the Exchange’s 

offering. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

Furthermore, the Exchange operates 

in a highly competitive environment, 

and its ability to price Intra-Day Volume 

Summary is constrained by competition 

among exchanges that offer similar data 

products to their customers. As 

discussed above, there are currently a 

number of similar products available to 

market participants and investors. At 

least eight other U.S. options exchanges 

offer a market data product that is 

substantially similar to the Exchange’s 

offering, which the Exchange must 

consider in its pricing discipline in 

order to compete effectively.27 For 

example, proposing fees that are 

excessively higher than established fees 

for similar data products would simply 

serve to reduce demand for the 

Exchange’s data product, which as 

discussed, market participants are under 

no obligation to utilize or purchase. In 

this competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

The Exchange does not believe the 

proposed rule change would cause any 

unnecessary or inappropriate burden on 

intramarket competition. Particularly, 

the proposed fees would apply 

uniformly to any subscriber, in that the 

Exchange would not differentiate 

between subscribers that purchase the 

Intra-Day Volume Summary and all 

subscribers would receive the same 

information in the data feed. The 

Exchange believes the proposed fees are 

set at a modest level that would allow 

interested subscribers to purchase such 

data based on their business needs. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A) 28 of the Act and paragraph 

(f) thereunder. At any time within 60 

days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEAMER–2023–58 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–NYSEAMER–2023–58. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEAMER–2023–58 and should 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 81161 

29 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 96930, 

Investment Advisers Act Release No. 6239 

(February 15, 2023), 88 FR 13872 (March 6, 2023) 

(‘‘T+1 Adopting Release’’). 4See supra note 3. 

5See supra note 3. 

6See supra note 3. Transactions with a trade date 

of Friday, May 24, 2024 would settle on 

Wednesday, May 29, 2024 because these 

transactions occurred before the rule was effective 

and continue to settle two days after the trade date. 

Additionally, transactions with a trade date of 

Tuesday, May 28, 2024 would also settle on 

Wednesday, May 29, 2024 because these 

transactions occurred when the T+1 rule was 

effective and would settle one day after the trade 

date. Of note, May 27, 2024 is Memorial Day and 

not a business day counted for purposes of 

settlement. 

be submitted on or before December 12, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25664 Filed 11–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98955; File No. SR–Phlx– 

2023–49] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Shorten the Standard 

Settlement Cycle 

November 15, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

14, 2023, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx Rules at Equity 11, Sections 6 (Exdividend, Ex-rights) and Section 7 (Exwarrants) to conform them to the 

Commission’s amendment to Rule 

15c6–1(a) of the Act 3 to shorten the 

standard settlement cycle for most 

broker-dealer transactions from two 

business days after the trade date 

(‘‘T+2’’) to one business days after the 

trade date (‘‘T+1’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Effective May 5, 2023, the 

Commission adopted rule amendments 

to shorten the standard settlement cycle 

for most broker-dealer transactions from 

T+2 to T+1.4 In light of the recently 

adopted rule amendments to Rule 15c6– 

1(a) of the Act to require standard 

settlement no later than T+1, Phlx 

proposes to amend its rules pertaining 

to securities settlement by, among other 

things, amending the definition of 

‘‘standard’’ settlement as occurring on 

T+1. 

Specifically, Phlx proposes to amend 

Equity 11, Sections 6 (Ex-dividend, Exrights) and Section 7 (Ex-warrants). The 

details of the proposed rule changes are 

described below. 

Equity 11, Section 6 

Equity 11, Section 6, Ex-dividend, Exrights, currently provides that 

transactions in stocks (except for those 

made for cash) shall be ex-dividend or 

ex-rights on the first business day 

preceding the record date fixed by the 

corporation or the date of the closing of 

transfer books thereof. It also provides 

that if the record date or closing of 

transfer books occurs on a day other 

than a business day, the transaction will 

be ex-dividend or ex-rights on the 

second preceding business day. 

The Exchange proposes to amend 

Equity 11, Section 6 to shorten the time 

frames by one business day. With this 

change the ex-dividend or ex-right date 

would be the same business day as the 

record date if the record date falls on a 

business day, or the first business day 

preceding the record date if the record 

date falls on a day other than a business 

day. Additionally, transactions in stocks 

made for ‘‘cash’’ would be ex-divided or 

ex-rights on the same business day as 

the record date or date of closing of 

transfer books. 

Equity 11, Section 7 

Equity 11, Section 7, Ex-warrants, 

currently provides that transactions in 

securities which have subscription 

warrants attached (except those made 

for cash) shall be ex-warrants on the 

first business day preceding the date of 

expiration of the warrants, except that 

when the date of expiration occurs on 

a day other than a business day, the 

transactions will be ex-warrants on the 

second business day preceding the date 

of expiration. 

The Exchange proposes to amend 

Equity 11, Section 7 to shorten the time 

frames by one business day. With this 

change, transactions in securities which 

have subscription warrants attached 

(except those made for ‘‘cash’’) shall be 

ex-warrants on the same business day 

preceding the date of expiration of the 

warrants, except that when the date of 

expiration occurs on a day other than a 

business day, said transactions shall be 

ex-warrants on the first business day 

preceding said date of expiration. 

Implementation 

The operative date of this proposed 

rule change will be Tuesday, May 28, 

2024, which is the compliance date 

specified in the Commission’s 

amendment to Rule 15c6–1(a) of the 

Act 5 to require standard settlement no 

later than T+1.6 With the 

implementation of the T+1 settlement 

cycle, the ex-dividend date for ‘‘normal’’ 

distributions pursuant to Equity 11, 

Section 6 will be the same business day 

as the record date. Accordingly, Phlx 

proposes to interpret Equity 11, Section 

6 so that the first record date to which 

this new ex-dividend date rationale will 

be applied will be Wednesday, May 29, 

2024. During the implementation of the 

T+2 settlement cycle, the ‘‘regular’’ exdividend dates will be as follows: 


lotter on DSK11XQN23PROD with NOTICES1